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ARI Blog: Article

Why Does an Restoration Contractor Need Electronic Data Protection Insurance?


Why Does a Restoration Contractor Need Electronic Data Protection Insurance? You and your staff have hours of headaches trying to restore the lost electronic data.

What Does Electronic Data Loss Insurance Cover?

1. Lost or damaged electronic data

EDP coverage, as commonly known, provides insurance to replace or restore your electronic data lost due to a covered cl due in return. For example, if a fire in your building destroys your computers, then your standard property policy would only pay to replace the hardware. EDP would pay to replace the data stored on those computers.

2. Interruption of Computer Operations

Data loss can severely impact a business. So if you have an Interruption of Computer Operations included in your policy. Their insurance company will cover the loss of actual income and extra expenses if you cannot operate your business due to the data loss.

What Doesn’t Electronic Data Loss Insurance Cover,

1. Your liability due to data loss (not a third party)

Most electronic data protection policies do not any liability coverage. So if an electronic data loss incurs any liability to a third party, you most likely do not have any coverage.

2. Your mistakes

EDP insurance typically will not cover any losses due to mistakes in processing electronic data, or in the design or implementation resulting from or support of your computer systems or networks unless those mistakes result in a covered claim that subsequently destroys the data.

3. Employee actions

EDP insurance usually will not provide any coverage for losses to electronic data if those losses result from your employee’s intentional actions.


For restoration contractors, this coverage can be invaluable. The high cost to restore electronic data like drawings, bids, etc., can be highly cumbersome and expensive.


If you are interested in getting a quote for the cost of Electronic Data Protection, please don’t hesitate to give our office a call.


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